Mmm .. the government would like to spend less on IT .. but it will still spend a lot.
It just might be that vendors have finally (!) concluded that the government will still pay the majority of what they're paying, so long as they can make a saving, all they have to do is charge in support fees rather than license fees .. that way *vendors* get all the money, instead of giving most of it to M$.
I know *some* sales types can be a little on the slow side, but I've been totally dumbfounded over the years that nobody twigged.
Whereas M$ (allegedly) pay lots of money to lobbyists to make sure M$ software makes it's way to all the right places, they appear to have alienated pretty much their entire distribution channel over the last 18 months, what with competing directly with hardware vendors and upping all their SW prices (and screwing with their licensing AND training schemes).
Once OO (or Libre) starts to roll out in .gov, some people will start to use Linux instead of Windows, because if they don't *need* to use Windows for M$ Office, Linux becomes an option. Once a proportion of gov users are on Linux, the only way to sell them Office is to roll out a Linux version of Office or sell them the cloud version. Following the white rabbit, it sounds like M$ need a Linux version of Office if they want to stay in the game ...